The so-called on-chain stock trading is not real stocks. So what is this thing?

Everyone has read Livermore's Reminiscences of a Stock Operator, right? It is essentially a betting contract based on stock prices that was launched by Livermore's speculation at that time. The underlying asset is just stocks.

This kind of derivative is completely not capitalism. The most important functions of stocks are fundraising certificates and management certificates. In fact, stocks are a means of monetizing the fragmentation of corporate ownership, serving as a certificate of claim for future profits. Derivatives like stocks are simply gambling tools.

Everyone who trades stocks has this operation of transferring between securities accounts, right? When third-party custody has not been realized, there can be no real stock trading on-chain. So, who received the money for the stocks that were created out of thin air? Whoever issued them gets the money. This is essentially stealing from capitalist money, or in other words, stealing from the underlying asset enterprises. The things on-chain now have neither ownership nor dividend rights; they are completely zero-sum bets.

In fact, derivatives betting on a single stock as the underlying asset have been completely banned in the United States for a long time.

Because stocks and stock derivatives are not the same thing. It is foreseeable that this will face huge opposition, mainly because it will siphon off liquidity and steal fundraising capabilities.